Party City Closes All Stores and Initiates Corporate Layoffs
Party City, a retailer of party supplies and costumes, has announced that it will close all of its stores and has initiated corporate layoffs, effective immediately. The decision was made due to ongoing financial challenges, according to a report by CNN.
The company’s CEO, Barry Litwin, informed corporate employees in a meeting that the company needs to “commence a winddown process immediately” and that Friday would be their last day of work for the company. Litwin described the message as “the most difficult message I’ve ever had to deliver.”
Party City filed for bankruptcy protection in August 2020 due to its inability to pay off $1.7 billion in debt. The company emerged from bankruptcy in September 2023 and transitioned into a privately held company.
The company’s struggles have been attributed to increased competition in the party goods and costume space, including the rise of online retailers and the expansion of Spirit Halloween. Party City had attempted to compete by offering items on Amazon in 2018, but it was ultimately unable to overcome these challenges.
As a result, Party City will close all of its 800 U.S. stores and initiate corporate layoffs, according to the report. The company’s representatives did not immediately respond to a request for comment on the news.
